BAHRAIN Law and Practice Contributed by: Noor Al Rayes, Mohamed Al Sari and Raghad Al Matrook, Al Tamimi & Company
• shares and other securities; • commercial assets; • movable property; and • debts owed to the judgment debtor by third par - ties. Attached assets may subsequently be sold through judicial sale procedures. Under Articles 34–35 of the Execution Law, immovable property may only be sold by public auction after the judgment becomes final, and the sale must comply with the prescribed notice and procedural requirements. The proceeds are applied towards satisfaction of the judgment. Third-Party Obligations Where third parties hold assets belonging to the debt - or or owe money to the debtor, the Enforcement Court may direct those third parties to preserve or transfer those assets in satisfaction of the judgment. Banks and certain governmental authorities commonly receive such orders during enforcement proceedings. Specific Performance Where the judgment requires the performance of an obligation rather than the payment of money, the Enforcement Court may supervise implementation. Under Article 25 of the Execution Law, where specific performance is required and the debtor fails to comply within ten days of notification, the court may impose a daily penalty to compel compliance. Insolvency Proceedings Where enforcement demonstrates that a commercial debtor is unable to satisfy its debts, insolvency pro - ceedings under the Reorganisation and Bankruptcy Law may provide an alternative mechanism for col - lective recovery by creditors. Under Article 47 of the Execution Law, where a company debtor fails to make disclosure or pursue settlement within the prescribed period, insolvency procedures may be initiated. Insol - vency does not replace ordinary enforcement in every case but may become appropriate where the debtor is financially distressed. 2.3 Costs and Time Taken to Enforce Domestic Judgments The cost and duration of enforcement vary signifi - cantly depending on the nature of the judgment, the
assets available and the level of co-operation from the judgment debtor. Costs Under Article 41 of the Execution Law, judicial costs relating to collection, preservation, repair, sale and distribution are recovered before any other claims. Typical enforcement costs include: • court filing fees; • notification expenses; • expert or valuation fees, where required; • auction expenses if assets are sold; and • legal representation costs. Straightforward monetary enforcement involving read - ily identifiable bank accounts generally attracts lower costs than enforcement against complex commercial assets or real estate. Timeframe Simple enforcement proceedings involving identifiable bank accounts or voluntary compliance may be com - pleted within several weeks or a few months. Enforcement against real property, commercial assets or disputed ownership interests generally takes longer because of valuation requirements, judicial sale pro - cedures and possible challenges by the debtor or third parties. Efficient Enforcement Options Attachment of bank accounts is generally the most efficient enforcement mechanism where banking information is available. Enforcement against immov - able property or business assets is often more time- consuming but may be necessary where liquid assets are insufficient to satisfy the judgment. Early identifi - cation of assets significantly improves the efficiency of enforcement proceedings.
2.4 Post-Judgment Procedures for Determining Defendants’ Assets
Following the issuance of an enforceable judgment, the Enforcement Court has powers to assist judgment creditors in identifying assets belonging to the judg - ment debtor.
31 CHAMBERS.COM
Powered by FlippingBook